Exam (elaborations)
CE Shop State Practice Exam Attempt 1 Questions and Answers
- Course
- Institution
CE Shop State Practice Exam Attempt 1 Questions and Answers
[Show more]
Content preview
CE Shop State Practice Exam Attempt 1Questions and Answers
A NC broker is reviewing a settlement statement that an attorney prepared for his seller
client. Which of the following is the broker expected to ensure?
A. All calculations for prorated items are correct
B. All charges are properly charged, and all credits are properly credited.
C. The attorney who prepared the statement correctly inputted the amounts due to and
from third parties.
D. The entries about which the broker has direct knowledge, like the purchase price and
earnest money, are correct. - Answer -D. The entries about which the broker has direct
knowledge, like the purchase price and earnest money, are correct.
In North Carolina, who is ultimately responsible for trust accounts and trust funds?
A. The client to whom the funds will eventually be dispersed
B. The broker-in-charge for the firm that's handling the funds and account
C. The custodian who deposited the funds and is maintaining the account
D. The client from whom the funds came - Answer -B. The broker-in-charge for the firm
that's handling the funds and account
In North Carolina, agency agreement laws require that ______.
A. Oral buyer/tenant agency agreements be "exclusive" and for a definite period
B. Agency agreements with property owners of any type of property be in writing within
three days of service
C. Oral agency agreements address all key aspects of the relationship, including agent
compensation
D. Oral agency agreements be reduced to writing within three days after an offer is
accepted - Answer -C. Oral agency agreements address all key aspects of the
relationship, including agent compensation
Which of the following is a TRUE statement about broker compensation in North
Carolina?
A. As long as a provisional broker has the supervising broker's permission, the PB may
legally receive brokerage compensation directly from clients.
,B. Compensation provided to a broker from a settlement service provider is probably in
violation of RESPA.
C. A selling bonus the listing firm pays to the buyer's agent may be disclosed to the
buyer client for the first time on the Closing Disclosure.
D. Written disclosure of compensation received from anyone other than a broker's client
must be made directly to the client by the closing day. - Answer -B. Compensation
provided to a broker from a settlement service provider is probably in violation of
RESPA.
The North Carolina Residential Rental Agreements Act states that ______.
A. The landlord may use constructive eviction if the tenant destroys the rental property
B. The landlord must refund all rent moneys to the tenant if the landlord breaches the
lease agreement
C. The tenant can stop paying rent and use that money to pay for required repairs in the
unit
D. The tenant must property dispose of all waste and garbage in a safe and clean
manner - Answer -D. The tenant must property dispose of all waste and garbage in a
safe and clean manner
Note: Under the North Carolina Residential Rental Agreements Act, both landlords and
tenants have certain duties. Among them, landlords must keep the property in a safe,
habitable condition, and tenants must properly dispose of garbage in a clean and safe
manner.
A buyer and seller have signed the Standard 2-T Offer to Purchase and Contract form,
jointly approved by the North Carolina Association of REALTORS® and the North
Carolina Bar Association. The buyer paid a $1,000 due diligence fee and a $5,000
earnest money deposit. During the due diligence period, the buyer realized he wouldn't
be approved for a mortgage, so he canceled the contract according to its terms. Which
of the following statements BEST describes what happens to the money?
A. The buyer gets the due diligence fee and EMD back.
B. The buyer gets the due diligence fee back, and the seller keeps the EMD.
C. The seller keeps the due diligence fee, and the buyer gets the EMD back.
D. The seller keeps the due diligence fee and the EMD. - Answer -C. The seller keeps
the due diligence fee, and the buyer gets the EMD back.
Note: Due diligence is the buyer's chance to investigate the property and transaction. By
paying the due diligence fee to the seller, buyers have "bought" the right to terminate
the contract for any reason or no reason, as long as it's done before the due diligence
period ends. If the buyer terminates during the DDP, the buyer's earnest money will be
refunded to the buyer, but the seller gets to keep the due diligence fee.
In North Carolina, which of the following describes a situation in which a broker who's in
charge of a trust account would be permitted to disburse disputed trust funds?
, A. It's been 90 days since the date the dispute was filed, allowing the broker to disburse
the funds as originally stated in the transaction parties' written agreement.
B. It's been one year from since the date the dispute was filed, which means the broker
may disburse the funds as originally stated in the transaction parties' written agreement.
C. The broker receives an order from the North Carolina Real Estate Commission.
D. The broker receives a written release from both parties to disburse the funds. -
Answer -D. The broker receives a written release from both parties to disburse the
funds.
Note: A broker who's holding disputed trust funds may disburse the funds after either
receiving a written release from both parties, or after receiving a court order detailing
disbursement instructions. Alternately, the funds may be given to a clerk of the local
superior court, who will determine who gets what.
What is the license year period in North Carolina?
A. August 1 through July 31
B. January 1 through December 31
C. July 1 through June 30
D. June 1 through May 31 - Answer -C. July 1 through June 30
Which North Carolina broker's license will be inactive as of the first day of the next
licensing year?
A. Craig, a broker-in-charge who's a solo practitioner
B. Denise, a provisional broker who's associated with Flying High Realty
C. Freida, a broker who paid a renewal fee but didn't complete her CE before June 10
D. George, a broker-in-charge who supervises other brokers but no longer actively sells
real estate - Answer -C. Freida, a broker who paid a renewal fee but didn't complete her
CE before June 10
In North Carolina, designated agency cannot be used if ______.
A. A broker-in-charge is one of the designated agents
B. A designated agent of one party knows confidential information about the opposing
party
C. A provisional broker is one of the designated agents
D. The firm is acting as a dual agent in the transaction - Answer -B. A designated agent
of one party knows confidential information about the opposing party
Which of the following is the best example of first substantial contact in North Carolina?
A. Handing out brokerage pens at the state fair
B. Responding to an email request for local median home prices
C. Responding to a request to show a listing to a potential buyer
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller millyphilip. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79373 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now